(a) General.
- (1) Form and filing. Each applicant for a permit to construct and operate a geologic storage facility must file an application with the division in Austin on a form prescribed by the Commission. The applicant must file one copy of the application and all attachments with the division in an electronic format. On the same date, the applicant must file one copy with the appropriate district office(s) and one copy with the Executive Director of the Texas Commission on Environmental Quality. An applicant must ensure that the application is executed by a party having knowledge of the facts entered on the form and included in the required attachments. If otherwise required under Occupations Code, Chapter 1001, relating to Texas Engineering Practices Act, or Chapter 1002, relating to Texas Geoscientists Practices Act, respectively, a licensed professional engineer or geoscientist must conduct the geologic and hydrologic evaluations required under this section and must affix the appropriate seal on the resulting reports of such evaluations.
- (2) General information. On the application, the applicant must include the name, mailing address, and location of the facility for which the application is being submitted and the operator's name, address, telephone number, Commission Organization Report number, and ownership of the facility.
- (3) Application completeness. The Commission may not issue a permit before receiving a complete application. A permit application is complete when the director determines that the application contains information addressing each application requirement of the regulatory program and all information necessary to initiate the final review by the director.
- (4) Reports. An applicant must ensure that all descriptive reports are prepared by a qualified and knowledgeable person and include an interpretation of the results of all logs, surveys, sampling, and tests required in this subchapter. The applicant must include in the application a quality assurance and surveillance plan for all testing and monitoring, which includes, at a minimum, validation of the analytical laboratory data, calibration of field instruments, and an explanation of the sampling and data acquisition techniques.
(b) Surface map and information. Only information of public record is required to be included on this map.
- (1) The applicant must file with the director a surface map delineating the proposed location(s) of injection well(s) and the boundary of the geologic storage facility for which a permit is sought and the applicable area of review.
(2) The applicant must show within the area of review on the map the number or name and the location of:
- (A) all known artificial penetrations through the confining zone, including injection wells, producing wells, inactive wells, plugged wells, or dry holes;
- (B) the locations of cathodic protection holes, subsurface cleanup sites, bodies of surface water, springs, surface and subsurface mines, quarries, and water wells; and
- (C) other pertinent surface features, including pipelines, roads, and structures intended for human occupancy.
- (3) The applicant must identify on the map any known or suspected faults expressed at the surface.
(c) Geologic, geochemical, and hydrologic information.
- (1) The applicant must submit a descriptive report prepared by a knowledgeable person that includes an interpretation of the results of appropriate logs, surveys, sampling, and testing sufficient to determine the depth, thickness, porosity, permeability, and lithology of, and the geochemistry of any formation fluids in, all relevant geologic formations.
(2) The applicant must submit information on the geologic structure and reservoir properties of the proposed storage reservoir and overlying formations, including the following information:
- (A) geologic and topographic maps and cross sections illustrating regional geology, hydrogeology, and the geologic structure of the area from the ground surface to the base of the injection zone within the area of review that indicate the general vertical and lateral limits of all underground sources of drinking water within the area of review, their positions relative to the storage reservoir and the direction of water movement, where known;
- (B) the depth, areal extent, thickness, mineralogy, porosity, permeability, and capillary pressure of, and the geochemistry of any formation fluids in, the storage reservoir and confining zone and any other relevant geologic formations, including geology/facies changes based on field data, which may include geologic cores, outcrop data, seismic surveys, well logs, and lithologic descriptions, and the analyses of logging, sampling, and testing results used to make such determinations;
- (C) the location, orientation, and properties of known or suspected transmissive faults or fractures that may transect the confining zone within the area of review and a determination that such faults or fractures would not compromise containment;
- (D) the seismic history, including the presence and depth of seismic sources, and a determination that the seismicity would not compromise containment;
- (E) geomechanical information on fractures, stress, ductility, rock strength, and in situ fluid pressures within the confining zone;
- (F) a description of the formation testing program used and the analytical results used to determine the chemical and physical characteristics of the injection zone and the confining zone; and
- (G) baseline geochemical data for subsurface formations that will be used for monitoring purposes, including all formations containing underground sources of drinking water within the area of review.
(d) Area of review and corrective action. This subsection describes the standards for the information regarding the delineation of the area of review, the identification of penetrations, and corrective action that an applicant must include in an application.
(1) Initial delineation of the area of review and initial corrective action. The applicant must delineate the area of review, identify all wells that require corrective action, and perform corrective action on those wells. Corrective action may be phased.
(A) Delineation of area of review.
(i) Using computational modeling that considers the volumes and the physical and chemical properties of the injected CO2 stream, the physical properties of the formation into which the CO2 stream is to be injected, and available data including data available from logging, testing, or operation of wells, the applicant must predict the lateral and vertical extent of migration for the CO2 plume and formation fluids and the pressure differentials required to cause movement of injected fluids or formation fluids into an underground source of drinking water in the subsurface for the following time periods:
- (I) five years after initiation of injection;
- (II) from initiation of injection to the end of the injection period proposed by the applicant; and
- (III) from initiation of injection to 10 years after the end of the injection period proposed by the applicant.
(ii) The applicant must use a computational model that:
- (I) is based on geologic and reservoir engineering information collected to characterize the injection zone and the confining zone;
- (II) is based on anticipated operating data, including injection pressures, rates, and total volumes over the proposed duration of injection;
- (III) takes into account relevant geologic heterogeneities and data quality, and their possible impact on model predictions;
- (IV) considers the physical and chemical properties of injected and formation fluids; and
- (V) considers potential migration through known faults, fractures, and artificial penetrations and beyond lateral spill points.
- (iii) The applicant must provide the name and a description of the model, software, the assumptions used to determine the area of review, and the equations solved.
- (B) Identification and table of penetrations. The applicant must identify, compile, and submit a table listing all penetrations, including active, inactive, plugged, and unplugged wells and underground mines in the area of review that may penetrate the confining zone, that are known or reasonably discoverable through specialized knowledge or experience. The applicant must provide a description of each penetration's type, construction, date drilled or excavated, location, depth, and record of plugging and/or completion or closure. Examples of specialized knowledge or experience may include reviews of federal, state, and local government records, interviews with past and present owners, operators, and occupants, reviews of historical information (including aerial photographs, chain of title documents, and land use records), and visual inspections of the facility and adjoining properties.
- (C) Corrective action. The applicant must demonstrate whether each of the wells on the table of penetrations has or has not been plugged and whether each of the underground mines (if any) on the table of penetrations has or has not been closed in a manner that prevents the movement of injected fluids or displaced formation fluids that may endanger underground sources of drinking water or allow the injected fluids or formation fluids to escape the permitted injection zone. The applicant must perform corrective action on all wells and underground mines in the area of review that are determined to need corrective action. The operator must perform corrective action using materials suitable for use with the CO2 stream. Corrective action may be phased.
(2) Area of review and corrective action plan. As part of an application, the applicant must submit an area of review and corrective action plan that includes the following information:
- (A) the method for delineating the area of review, including the model to be used, assumptions that will be made, and the site characterization data on which the model will be based;
(B) for the area of review, a description of:
- (i) the minimum frequency subject to the annual certification pursuant to §5.206(f) of this title (relating to Permit Standards) at which the applicant proposes to re-evaluate the area of review during the life of the geologic storage facility;
- (ii) how monitoring and operational data will be used to re-evaluate the area of review; and
- (iii) the monitoring and operational conditions that would warrant a re-evaluation of the area of review prior to the next scheduled re-evaluation; and
(C) a corrective action plan that describes:
- (i) how the corrective action will be conducted;
- (ii) how corrective action will be adjusted if there are changes in the area of review;
- (iii) if a phased corrective action is planned, how the phasing will be determined; and
- (iv) how site access will be secured for future corrective action.
(e) Injection well construction.
(1) Criteria for construction of anthropogenic CO2 injection wells. This paragraph establishes the criteria for the information about the construction and casing and cementing of, and special equipment for, anthropogenic CO2 injection wells that an applicant must include in an application.
(A) General. The operator of a geologic storage facility must ensure that all anthropogenic CO2 injection wells are constructed and completed in a manner that will:
- (i) prevent the movement of injected CO2 or displaced formation fluids into any unauthorized zones or into any areas where they could endanger underground sources of drinking water;
- (ii) allow the use of appropriate testing devices and workover tools; and
- (iii) allow continuous monitoring of the annulus space between the injection tubing and long string casing.
(B) Casing and cementing of anthropogenic CO2 injection wells.
- (i) The operator must ensure that injection wells are cased and the casing cemented in compliance with §3.13 of this title (relating to Casing, Cementing, Drilling, and Completion Requirements).
- (ii) Casing, cement, cement additives, and/or other materials used in the construction of each injection well must have sufficient structural strength and must be of sufficient quality and quantity to maintain integrity over the design life of the injection well. All well materials must be suitable for use with fluids with which the well materials may be expected to come into contact and must meet or exceed test standards developed for such materials by the American Petroleum Institute, ASTM International, or comparable standards as approved by the director.
- (iii) Surface casing must extend through the base of the lowermost underground source of drinking water above the injection zone and must be cemented to the surface.
- (iv) Circulation of cement may be accomplished by staging. The director may approve an alternative method of cementing in cases where the cement cannot be circulated to the surface, provided the applicant can demonstrate by using logs that the cement does not allow fluid movement between the casing and the well bore.
- (v) At least one long string casing, using a sufficient number of centralizers, must extend through the injection zone. The long string casing must isolate the injection zone and other intervals as necessary for the protection of underground sources of drinking water and to ensure confinement of the injected and formation fluids to the permitted injection zone using cement and/or other isolation techniques.
- (vi) The applicant must verify the integrity and location of the cement using technology capable of radial evaluation of cement quality and identification of the location of channels to ensure that underground sources of drinking water will not be endangered.
- (vii) The director may exempt existing wells that have been associated with injection of CO2 for the purpose of enhanced recovery from provisions of these casing and cementing requirements if the applicant demonstrates that the well construction meets the general performance criteria in subparagraph (A) of this paragraph.
(C) Special equipment.
- (i) Tubing and packer. All injection wells must inject fluids through tubing set on a mechanical packer. Packers must be set no higher than 100 feet above the top of the permitted injection interval or at a location approved by the director.
- (ii) Pressure observation valve. The wellhead of each injection well must be equipped with a pressure observation valve on the tubing and each annulus of the well.
(2) Construction information. The applicant must provide the following information for each well to allow the director to determine whether the proposed well construction and completion design will meet the general performance criteria in paragraph (1) of this subsection:
- (A) depth to the injection zone;
- (B) hole size;
- (C) size and grade of all casing and tubing strings (e.g., wall thickness, external diameter, nominal weight, length, joint specification and construction material, tubing tensile, burst, and collapse strengths);
- (D) proposed injection rate (intermittent or continuous), maximum proposed surface injection pressure, and maximum proposed volume of the CO2 stream;
- (E) type of packer and packer setting depth;
- (F) a description of the capability of the materials to withstand corrosion when exposed to a combination of the CO2 stream and formation fluids;
- (G) down-hole temperatures and pressures;
- (H) lithology of injection and confining zones;
- (I) type or grade of cement and additives;
- (J) chemical composition and temperature of the CO2 stream; and
- (K) schematic drawings of the surface and subsurface construction details.
- (3) Well construction plan. The applicant must submit an injection well construction plan that meets the criteria in paragraph (1) of this subsection.
- (4) Well stimulation plan. The applicant must submit, as applicable, a description of the proposed well stimulation program and a determination that well stimulation will not compromise containment.
(f) Plan for logging, sampling, and testing of injection wells after permitting but before injection. The applicant must submit a plan for logging, sampling, and testing of each injection well after permitting but prior to injection well operation. The plan need not include identical logging, sampling, and testing procedures for all wells provided there is a reasonable basis for different procedures. Such plan is not necessary for existing wells being converted to anthropogenic CO2 injection wells in accordance with this subchapter, to the extent such activities already have taken place. The plan must describe the logs, surveys, and tests to be conducted to verify the depth, thickness, porosity, permeability, and lithology of, and the salinity of any formation fluids in, the formations that are to be used for monitoring, storage, and confinement to assure conformance with the injection well construction requirements set forth in subsection (e) of this section, and to establish accurate baseline data against which future measurements may be compared. The plan must meet the following criteria and must include the following information.
(1) Logs and surveys of newly drilled and completed injection wells.
- (A) During the drilling of any hole that is constructed by drilling a pilot hole that is enlarged by reaming or another method, the operator must perform deviation checks at sufficiently frequent intervals to determine the location of the borehole and to assure that vertical avenues for fluid movement in the form of diverging holes are not created during drilling.
- (B) Before surface casing is installed, the operator must run appropriate logs, such as resistivity, spontaneous potential, and caliper logs.
- (C) After each casing string is set and cemented, the operator must run logs, such as a cement bond log, variable density log, and a temperature log, to ensure proper cementing.
- (D) Before long string casing is installed, the operator must run logs appropriate to the geology, such as resistivity, spontaneous potential, porosity, caliper, gamma ray, and fracture finder logs, to gather data necessary to verify the characterization of the geology and hydrology.
(2) Testing and determination of hydrogeologic characteristics of injection and confining zone.
- (A) Prior to operation, the operator must conduct tests to verify hydrogeologic characteristics of the injection zone.
- (B) The operator must perform an initial pressure fall-off or other test and submit to the director a written report of the results of the test, including details of the methods used to perform the test and to interpret the results, all necessary graphs, and the testing log, to verify permeability, injectivity, and initial pressure using water or CO2.
- (C) The operator must determine or calculate the fracture pressures for the injection and confining zone. If the fracture pressures are determined through calculation, the Commission will include in any permit it might issue a limit of 90% of the calculated fracture pressure to ensure that the injection pressure does not exceed the fracture pressure.
(3) Sampling.
- (A) The operator must record and submit the formation fluid temperature, pH, and conductivity, the reservoir pressure, and the static fluid level of the injection zone.
- (B) The operator must submit analyses of whole cores or sidewall cores representative of the injection zone and confining zone and formation fluid samples from the injection zone. The director may accept data from cores and formation fluid samples from nearby wells or other data if the operator can demonstrate to the director that such data are representative of conditions at the proposed injection well.
(g) Compatibility determination. Based on the results of the formation testing program required by subsection (f) of this section, the applicant must submit a determination of the compatibility of the CO2 stream with:
- (1) the materials to be used to construct the well;
- (2) fluids in the injection zone; and
- (3) minerals in both the injection and the confining zone.
(h) Mechanical integrity testing.
(1) Criteria. This paragraph establishes the criteria for the mechanical integrity testing plan for anthropogenic CO2 injection wells that an applicant must include in an application.
- (A) Other than during periods of well workover in which the sealed tubing-casing annulus is of necessity disassembled for maintenance or corrective procedures, the operator must maintain mechanical integrity of the injection well at all times.
- (B) Before beginning injection operations and at least once every five years thereafter, the operator must demonstrate mechanical integrity for each injection well by pressure testing the tubing-casing annulus.
- (C) Following an initial annulus pressure test, the operator must continuously monitor injection pressure, rate, injected volumes, and pressure on the annulus between tubing and long string casing to confirm that the injected fluids are confined to the injection zone.
- (D) At least once every five years, the operator must confirm that the injected fluids are confined to the injection zone using a method approved by the director (e.g., diagnostic surveys such as oxygen-activation logging or temperature or noise logs).
- (E) The operator must test injection wells after any workover that disturbs the seal between the tubing, packer, and casing in a manner that verifies mechanical integrity of the tubing and long string casing.
- (F) An operator must either repair and successfully retest or plug a well that fails a mechanical integrity test.
(2) Mechanical integrity testing plan. The applicant must prepare and submit a mechanical integrity testing plan as part of a permit application. The plan must include a schedule for the performance of a series of tests at a minimum frequency of five years. The performance tests must be designed to demonstrate the internal and external mechanical integrity of each injection well. These tests may include:
- (A) a pressure test with liquid or inert gas;
- (B) a tracer survey such as oxygen-activation logging;
- (C) a temperature or noise log;
- (D) a casing inspection log; and/or
- (E) any alternative method that provides equivalent or better information approved by the director.
(i) Operating information.
(1) Operating plan. The applicant must submit a plan for operating the injection wells and the geologic storage facility that complies with the criteria set forth in §5.206(c) of this title, and that outlines the steps necessary to conduct injection operations. The applicant must include the following proposed operating data in the plan:
- (A) the average and maximum daily injection rates and volumes of the CO2 stream;
- (B) the average and maximum surface injection pressure;
- (C) the source(s) of the CO2 stream and the volume of CO2 from each source; and
- (D) an analysis of the chemical and physical characteristics of the CO2 stream prior to injection.
(2) Maximum injection pressure. The director will approve a maximum injection pressure limit that:
- (A) considers the risks of tensile failure and, where appropriate, geomechanical or other studies that assess the risk of tensile failure and shear failure;
- (B) with a reasonable degree of certainty will avoid initiation or propagation of fractures in the confining zone or cause otherwise non-transmissive faults transecting the confining zone to become transmissive; and
- (C) in no case may cause the movement of injection fluids or formation fluids in a manner that endangers underground sources of drinking water.
(j) Plan for monitoring, sampling, and testing after initiation of operation.
- (1) The applicant must submit a monitoring, sampling, and testing plan for verifying that the geologic storage facility is operating as permitted and that the injected fluids are confined to the injection zone.
(2) The plan must include the following:
- (A) the analysis of the CO2 stream prior to injection with sufficient frequency to yield data representative of its chemical and physical characteristics;
- (B) the installation and use of continuous recording devices to monitor injection pressure, rate, and volume, and the pressure on the annulus between the tubing and the long string casing, except during workovers;
(C) after initiation of injection, the performance on a semi-annual basis of corrosion monitoring of the well materials for loss of mass, thickness, cracking, pitting, and other signs of corrosion to ensure that the well components meet the minimum standards for material strength and performance set forth in subsection (e)(1)(A) of this section. The operator must report the results of such monitoring annually. Corrosion monitoring may be accomplished by:
- (i) analyzing coupons of the well construction materials in contact with the CO2 stream;
- (ii) routing the CO2 stream through a loop constructed with the materials used in the well and inspecting the materials in the loop; or
- (iii) using an alternative method, materials, or time period approved by the director;
(D) monitoring of geochemical and geophysical changes, including:
- (i) periodic sampling of the fluid temperature, pH, conductivity, reservoir pressure and static fluid level of the injection zone and monitoring for pressure changes, and for changes in geochemistry, in a permeable and porous formation near to and above the top confining zone;
- (ii) periodic monitoring of the quality and geochemistry of an underground source of drinking water within the area of review and the formation fluid in a permeable and porous formation near to and above the top confining zone to detect any movement of the injected CO2 through the confining zone into that monitored formation;
- (iii) the location and number of monitoring wells justified on the basis of the area of review, injection rate and volume, geology, and the presence of artificial penetrations and other factors specific to the geologic storage facility; and
- (iv) the monitoring frequency and spatial distribution of monitoring wells based on baseline geochemical data collected under subsection (c)(2) of this section and any modeling results in the area of review evaluation;
- (E) tracking the extent of the CO2 plume and the position of the pressure front by using indirect, geophysical techniques, which may include seismic, electrical, gravity, or electromagnetic surveys and/or down-hole CO2 detection tools; and
- (F) additional monitoring as the director may determine to be necessary to support, upgrade, and improve computational modeling of the area of review evaluation and to determine compliance with the requirements that the injection activity not allow the movement of fluid containing any contaminant into underground sources of drinking water and that the injected fluid remain within the permitted interval.
(k) Well plugging plan. The applicant must submit a well plugging plan for all injection wells and monitoring wells that penetrate the base of usable quality water that includes:
- (1) a proposal for plugging all monitoring wells that penetrate the base of usable quality water and all injection wells upon abandonment in accordance with §3.14 of this title (relating to Plugging);
(2) proposals for activities to be undertaken prior to plugging an injection well, specifically:
- (A) flushing each injection well with a buffer fluid;
- (B) performing tests or measures to determine bottomhole reservoir pressure;
- (C) performing final tests to assess mechanical integrity; and
- (D) ensuring that the material to be used in plugging must be compatible with the CO2 stream and the formation fluids;
(3) a proposal for giving notice of intent to plug monitoring wells that penetrate the base of usable quality water and all injection wells. The applicant's plan must ensure that:
- (A) the operator notifies the director at least 60 days before plugging a well. At this time, if any changes have been made to the original well plugging plan, the operator must also provide a revised well plugging plan. At the discretion of the director, an operator may be allowed to proceed with well plugging on a shorter notice period; and
- (B) the operator will file a notice of intention to plug and abandon (Form W-3A) a well with the appropriate Commission district office and the division in Austin at least five days prior to the beginning of plugging operations;
- (4) a plugging report for monitoring wells that penetrate the base of usable quality water and all injection wells. The applicant's plan must ensure that within 30 days after plugging the operator will file a complete well plugging record (Form W-3) in duplicate with the appropriate district office. The operator and the person who performed the plugging operation (if other than the operator) must certify the report as accurate;
- (5) a plan for plugging all monitoring wells that do not penetrate the base of usable quality water in accordance with 16 TAC Chapter 76 (relating to Water Well Drillers and Water Well Pump Installers); and
- (6) a plan for certifying that all monitoring wells that do not penetrate the base of usable quality water will be plugged in accordance with 16 TAC Chapter 76.
(l) Emergency and remedial response plan. The applicant must submit an emergency and remedial response plan that:
- (1) accounts for the entire area of review, regardless of whether or not corrective action in the area of review is phased;
- (2) describes actions to be taken to address escape from the permitted injection interval or movement of the injection fluids or formation fluids that may cause an endangerment to underground sources of drinking water during construction, operation, closure, and post-closure periods;
- (3) includes a safety plan that includes emergency response procedures, provisions to provide security against unauthorized activity, and CO2 release detection and prevention measures; and
- (4) includes a description of the training and testing that will be provided to each employee at the storage facility on operational safety and emergency response procedures to the extent applicable to the employee's duties and responsibilities. The operator must train all employees before commencing injection and storage operations at the facility. The operator must train each subsequently hired employee before that employee commences work at the storage facility. The operator must hold a safety meeting with each contractor prior to the commencement of any new contract work at a storage facility. Emergency measures specific to the contractor's work must be explained in the contractor safety meeting. Training schedules, training dates, and course outlines must be provided to Commission personnel upon request for the purpose of Commission review to determine compliance with this paragraph.
(m) Post-injection storage facility care and closure plan. The applicant must submit a post-injection storage facility care and closure plan. The plan must include:
- (1) the pressure differential between pre-injection and predicted post-injection pressures in the injection zone;
- (2) the predicted position of the CO2 plume and associated pressure front at closure as demonstrated in the area of review evaluation required under subsection (d) of this section;
- (3) a description of the proposed post-injection monitoring location, methods, and frequency;
- (4) a proposed schedule for submitting post-injection storage facility care monitoring results to the division; and
- (5) the estimated cost of proposed post-injection storage facility care and closure.
(n) Fees, financial responsibility, and financial assurance. The applicant must pay the fees, demonstrate that it has met the financial responsibility requirements, and provide the Commission with financial assurance as required under §5.205 of this title (relating to Fees, Financial Responsibility, and Financial Assurance).
- (1) The applicant must demonstrate financial responsibility and resources for corrective action, injection well plugging, post-injection storage facility care and storage facility closure, and emergency and remedial response until the director has provided to the operator a written verification that the director has determined that the facility has reached the end of the post-injection storage facility care period.
(2) In determining whether the applicant is financially responsible, the director must rely on the following:
- (A) the person's most recent audited annual report filed with the U. S. Securities and Exchange Commission under Section 13 or 15(d), Securities Exchange Act of 1934 (15 U.S.C. Section 78m or 78o(d)). The date of the audit may not be more than one year before the date of submission of the application to the division; and
- (B) the person's most recent quarterly report filed with the U. S. Securities and Exchange Commission under Section 13 or 15(d), Securities Exchange Act of 1934 (15 U.S.C. Section 78m or 78o(d)); or
- (C) if the person is not required to file such a report, the person's most recent audited financial statement. The date of the audit must not be more than one year before the date of submission of the application to the division.
- (o) Letter from the Groundwater Advisory Unit of the Oil and Gas Division. The applicant must submit a letter from the Groundwater Advisory Unit of the Oil and Gas Division in accordance with Texas Water Code, §27.046.
- (p) Other information. The applicant must submit any other information requested by the director as necessary to discharge the Commission's duties under Texas Water Code, Chapter 27, Subchapter B-1, or deemed necessary by the director to clarify, explain, and support the required attachments.
Source Note:The provisions of this §5.203 adopted to be effective December 20, 2010, 2010, 35 TexReg 11202; amended to be effective July 2, 2012, 37 TexReg 4899.